Comparing IDEX (NYSE:IEX) & Kawasaki Heavy Industries (OTCMKTS:KWHIY)

Kawasaki Heavy Industries (OTCMKTS:KWHIY) and IDEX (NYSE:IEX) are both large-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares Kawasaki Heavy Industries and IDEX”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kawasaki Heavy Industries	$13.98 billion	0.78	$580.81 million	$1.53	16.93
IDEX	$3.42 billion	3.80	$505.00 million	$6.32	27.50

Kawasaki Heavy Industries has higher revenue and earnings than IDEX. Kawasaki Heavy Industries is trading at a lower price-to-earnings ratio than IDEX, indicating that it is currently the more affordable of the two stocks.

Dividends

Kawasaki Heavy Industries pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. IDEX pays an annual dividend of $2.84 per share and has a dividend yield of 1.6%. Kawasaki Heavy Industries pays out 19.6% of its earnings in the form of a dividend. IDEX pays out 44.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. IDEX has raised its dividend for 16 consecutive years. IDEX is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

98.0% of IDEX shares are held by institutional investors. 0.5% of IDEX shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Kawasaki Heavy Industries and IDEX, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kawasaki Heavy Industries	0	1	0	0	2.00
IDEX	0	2	4	0	2.67

IDEX has a consensus price target of $198.86, suggesting a potential upside of 14.40%. Given IDEX’s stronger consensus rating and higher probable upside, analysts clearly believe IDEX is more favorable than Kawasaki Heavy Industries.

Volatility & Risk

Kawasaki Heavy Industries has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, IDEX has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Kawasaki Heavy Industries and IDEX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kawasaki Heavy Industries	3.49%	10.50%	2.55%
IDEX	13.97%	15.20%	8.73%

Summary

IDEX beats Kawasaki Heavy Industries on 14 of the 17 factors compared between the two stocks.

About Kawasaki Heavy Industries

Kawasaki Heavy Industries, Ltd. engages in aerospace systems, energy solution and marine engineering, precision machinery and robot, rolling stock, and motorcycle and engine businesses in Japan and internationally. It manufactures aircraft for the Japan ministry of defense; helicopters; and helicopter and jet engines for commercial aircrafts. The company also manufactures railway cars; a range of rolling stocks, including Shinkansen, electric cars, passenger coaches, freight cars, locomotives, diesel locomotives, and transit systems. In addition, it engages in the production and sale of energy-related machinery and systems, marine machinery and systems, industrial equipment, and environmental equipment. Further, the company manufactures and supplies motorcycles, off-road four wheelers, watercrafts, general-purpose gasoline engines, etc. Additionally, it manufactures and sells pumps, motors, valves, and various hydraulic machinery, as well as assembles hydraulic systems; and industrial robots for use in welding, assembly, handling, painting, and palletization for various industries, including automotive and electronics industries. The company was founded in 1878 and is headquartered in Tokyo, Japan.

About IDEX

IDEX Corporation, together with its subsidiaries, provides applied solutions worldwide. The company operates through three segments: Fluid & Metering Technologies (FMT), Health & Science Technologies (HST), and Fire & Safety/Diversified Products (FSDP). The FMT segment designs, produces, and distributes positive displacement pumps, valves, small volume provers, flow meters, injectors, and other fluid-handling pump modules and systems, as well as flow monitoring and other services for the food, chemical, general industrial, water and wastewater, agricultural, and energy industries. The HST segment designs, produces, and distributes precision fluidics positive displacement pumps, powder and liquid processing technologies, drying systems, micro-precision components, pneumatic components and sealing solutions, high performance molded and extruded sealing components, custom mechanical and shaft seals, engineered hygienic mixers and valves, biocompatible medical devices and implantables, air compressors and blowers, optical components and coatings, laboratory and commercial equipment, and precision photonic solutions. This segment serves food and beverage, life sciences, analytical instruments, pharmaceutical and biopharmaceutical, industrial, semiconductor, automotive/transportation, medical/dental, energy, cosmetics, marine, chemical, wastewater and water treatment, research and aerospace/defense markets. The FSDP segment designs, produces, and distributes firefighting pumps, valves and controls, rescue tools, lifting bags, and other components and systems for the fire and rescue industry; engineered stainless steel banding and clamping devices for various industrial and commercial applications; and precision equipment for dispensing, metering, and mixing colorants and paints used in retail and commercial businesses. IDEX Corporation was incorporated in 1987 and is headquartered in Northbrook, Illinois.